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1. A Ford Motor Co. coupon bond has a coupon rate of 6.65%, and pays annual coupons. The next coupon is due tomorrow and the
1. A Ford Motor Co. coupon bond has a coupon rate of 6.65%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 32 years from tomorrow. The yield on the bond issue is 6.3%. At what price should this bond trade today, assuming a face value of $1000?
2. What is the price of a 55-year, 7.9% coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 7.1%?
The price of the bond is? (Round to the nearest cent.)
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